On April 21, 2025, AZZ Inc (AZZ, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and fiscal year 2025. AZZ Inc, a leading provider of galvanizing and metal coating solutions in North America, reported record full-year sales and profitability, with an adjusted EPS of $5.20 and GAAP EPS of $1.79.
Fiscal Year 2025 Overview
AZZ Inc achieved total sales of $1,577.7 million, marking a 2.6% increase from the previous fiscal year. The Metal Coatings segment contributed $665.1 million, up 1.4%, while the Precoat Metals segment saw a 3.5% increase, reaching $912.6 million. Net income rose by 26.8% to $128.8 million, although net income available to common shareholders was $52.4 million due to a $75.2 million redemption premium on Series A Preferred Stock. The company's adjusted net income increased by 18.1% to $156.8 million.
The GAAP diluted EPS was $1.79, a decrease of 48.3%, reflecting the full redemption of Series A Preferred Stock. However, the adjusted diluted EPS rose by 14.8% to $5.20. Adjusted EBITDA improved by 4.3% to $347.9 million, representing 22.0% of sales. The Metal Coatings segment achieved an adjusted EBITDA margin of 30.9%, while the Precoat Metals segment reported a 19.6% margin.
Fourth Quarter 2025 Performance
In the fourth quarter, AZZ Inc reported total sales of $351.9 million, a 4.0% decline primarily attributed to inclement weather. Metal Coatings sales decreased by 3.9% to $148.4 million, and Precoat Metals sales fell by 4.1% to $203.5 million. Despite the sales decline, net income increased by 41.7% to $20.2 million, and adjusted net income rose by 7.9% to $29.6 million.
The GAAP diluted EPS for the quarter was $0.67, up 19.6%, while the adjusted diluted EPS increased by 5.4% to $0.98. Adjusted EBITDA for the quarter was $71.2 million, maintaining a margin of 20.2% of sales.
Financial Achievements and Strategic Initiatives
AZZ Inc's fiscal year 2025 was marked by significant financial achievements, including a debt reduction of $110.0 million, bringing net leverage below 2.5x. The company generated $249.9 million in operating cash flow, enabling substantial completion of a greenfield project in Washington, Missouri, and the full redemption of Series A Preferred Stock.
Tom Ferguson, President, and Chief Executive Officer of AZZ, commented, "Fiscal year 2025 was a successful year for AZZ. We delivered record full year results and made significant progress on our growth initiatives throughout the year."
Income Statement and Balance Sheet Highlights
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Total Sales | $1,577.7 million | $1,537.6 million |
| Net Income | $128.8 million | $101.6 million |
| Adjusted EBITDA | $347.9 million | $333.6 million |
AZZ Inc's balance sheet reflects total assets of $2,227.1 million, with current assets at $375.4 million. The company reduced its long-term debt to $852.4 million, down from $952.7 million in the previous year.
Analysis and Outlook
AZZ Inc's performance in fiscal year 2025 demonstrates resilience and strategic growth, despite challenges such as adverse weather conditions impacting the fourth quarter. The company's ability to increase net income and adjusted EBITDA, alongside significant debt reduction, highlights its strong financial management and operational efficiency.
Looking ahead, AZZ Inc reiterates its fiscal year 2026 guidance, projecting sales between $1.625 billion and $1.725 billion, with adjusted EBITDA ranging from $360 million to $400 million. The company remains focused on strategic growth initiatives and enhancing shareholder value.
Explore the complete 8-K earnings release (here) from AZZ Inc for further details.
